Wheat rallies as demand flurry offsets virus worries

Wheat rallies as demand flurry offsets virus worries

PARIS/SINGAPORE- U.S. and European wheat futures rose sharply on Thursday as a series of import tenders and fears of rain damage to Australia's harvest took attention away from a new coronavirus variant. Soybeans were firm as news of a fresh import purchase by China lent support. Corn also rose, helped by higher crude oil prices and concern over dry growing conditions in Argentina and southern Brazil. The most-active wheat contract on the Chicago Board Of Trade (CBOT) was up 2.0% at $8.06-1/4 a bushel by 1149 GMT. In Europe, March wheat on Paris-based Euronext was up 2.4% at 294.25 euros ($333.71) a tonne. Wheat futures extended a rebound from near three-week lows struck on Tuesday, when investor jitters over the impact of the Omicron variant had sparked a broad sell-off. News on Thursday of an import tender by Saudi Arabia was a latest sign of buyers taking advantage of the recent pullback in prices. Egypt's state buying agency on Monday made its biggest purchase in years while Tunisia is holding a tender on Thursday. Renewed demand has put the focus back on ebbing availability of milling-grade wheat, with top supplier Russia considering further export restrictions and alternative supply from Australia